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Accountancy Philippines - Tariff and Customs Code Reviewer - CPALE Tax - Part 1
Accountancy Philippines - Tariff and Customs Code Reviewer - CPALE Tax - Part 1
Accountancy Philippines - Tariff and Customs Code Reviewer - CPALE Tax - Part 1
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F r i d a y, S e p t e m b e r 1 , 2 0 1 7
Core Principles
Provides that Tariff and Customs Laws include not only the provisions of
the code itself and regulations pursuant thereto but all other laws and regulation which are
subject to enforcement by the Bureau of Customs or otherwise within its jurisdiction. It
extend not only to the provisions of the Tariff Customs Code but to all other laws as well;
like Central Bank Circulars, the enforcement of which is entrusted to the Bureau of
Customs.
1. Custom duties:
Are duties which are one charged upon commodities on their being imported into or
exported out of a country.
2. Tariff:
As to Imported Articles:
All articles when imported from any foreign country into the Philippines shall be subject
to duty upon each importation even thought previously exported from the Philippines.
Except as otherwise specifically provided for in the code or other laws:
As to Exported Articles
Certain articles like specific types of wood, mineral plant, vegetable and animal
products are subject to tariff and premium duties.
Note: Articles: When used with reference to importation or exportation includes goods,
wares and merchandise and, in general anything that maybe made the subject of
exportation and importation.
Pertinent Case:
4 US dollars, having ceased to be legal tender in the Philippines, fall within the meaning
of the term “merchandise” (Bastida vs. Acting Commissioner of Customs, et al, L-24011,
Oct. 24, 1970)
General Rule: All articles when imported from a foreign country including those
previously exported from the Philippines one subject to duty unless otherwise specifically
provided for in the Tariff and Customs Code or other laws. (Sec. 100, TCS)
Classifications:
1. weapons of war
2. gambling devices
Refers to those which maybe imported but subject to, and after compliance with, certain
conditions.
Pertinent Cases:
1. Where such conditions as to warrant lawful importation neither do nor exist, the
legal effects of the importation of qualifiedly prohibited articles are the same as those of
absolutely prohibited articles. (Auyong Hian vs CTA, 59 SCRA 110)
2. Prohibited importations one subject to forfeiture whether the shipper and the
consignee are one and the same person. (UTE PATEROR vs. Bureau of Customs, 193 S
132)
3. Conditionally-free importations:
These are articles which are exempt from import duties upon compliance with the
1. Those prohibited for in Sec. 105 of the Tariff and Customs Code;
General Rule: All importations / exportation of articles / goods are subject to customs
duties.
Exceptions:
1. freight
2. insurance
3. cost
4. expenses, and
Note: Imported goods must be entered into a custom house at their port of entry otherwise
they shall be considered as contraband and the importer is liable for smuggling.
Import entry
Importation begins when the carrying vessel or aircraft enters the jurisdiction of the
Philippines with the intention to unlade therein.
Importation is deemed terminated upon payment of duties, taxes and other charges due
upon the articles pr secured to be paid at a port of entry and the legal permit for
withdrawal shall gave been granted or in case said articles are free of duties, taxes and
Note: All imported articles into the Philippines, whether subject to duty or not, shall be
entered through a customs house at a port of entry.
1. Port of Entry
Means a domestic open to both foreign and continuous trade including airport of entry.
2. Exportation
3. Under Executive Order # 26, Series of 1986, Export taxes, except on logs, have
been suspended
These are duties imposed on imported articles that enter the country of the Philippines in
avoidance with the schedules and classifications provided under the Tariff and Customs
Code.
Classification:
1. Ad valorem Duty
2. Specific Duty
B. Special Duties
Classifications:
1. Dumping Duty
Imposed by the secretary of Finance upon the recommendation of the Tariff Commission
when:
a. The price of the imported article is deliberately or continually fixed at less than the
fair market value or cost of production; and
b. Importation would cause or likely cause and injury to local industries engaged in
the manufacture or production of the same or similar articles or prevent their
establishment.
2. Countervailing duty
Special duty imposed on imported articles which are granted any kind or form of subsidy
by the government in the country or origin or exportation, the importation of which has
caused or threatens to cause material injury to a domestic industry or has materially
relaided the growth or, prevents the establishment of a domestic industry. (RA #8751)
Requisites:
1. The levy of an excise tax or inland tax or local goods of the same or similar class as the
article imported or the grant of subsidy to the foreign exporter by his government; and
2. The importation is likely to insure materially established local industries or prevent their
establishments.
3. Marking Duty
Special duty of five percent (5%) advalorem imposed or articles properly marked,
collected by the commissioner, except when such article is exported or destroyed under
the customs supervision and prior to final liquidation of the corresponding entry.
4. Discriminatory/Retaliatory duty
Imposed on imported goods whenever it is found as a fact that the country of origin
discriminates against the commerce of the Philippines in such a manner as to place the
commerce of the Philippines at a disadvantage compared with the commerce of any
foreign country.
5. Duties imposed under the Flexible Tariff Clause (Sec. 401, TCC)
Import duties which are modified by the President upon investigation of the Tariff
Commissions and recommendation of the National Economic Development Authority in
the interest of national economy, general welfare and national security.
The President is given by the Tariff and Customs Code ample powers to adjust tariff rates
Sec. 401 of TCC; empowers the president to:
3. Impose and additional duty on all imports not exceeding 10% advalorem whenever
necessary.
2. The commission shall also hear the views and recommendations of any government
office, agency or instrumentality concerned;
3. The commission shall submit their findings and recommendations to the NEDA within
30 days after the termination of the public hearings. The NEDA thereafter, submits its
recommendation to the President.
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